Fed's Williams Expects Inflation to Moderate to 3.5% This Year
New York Fed President John Williams forecast that inflation will moderate to 3.5% this year, while predicting the Federal Reserve’s preferred price measure will return to its 2% target between 2027 and 2028. Speaking on Wednesday, Williams reiterated that monetary policy is “well positioned” to address price pressures, though he cautioned that inflation is expected to remain uncomfortably above the central bank’s goal in the near term.
The projection offers a concrete outlook from one of the Federal Open Market Committee’s most influential members, shaping expectations for how long the Fed will maintain its current interest rate stance. Williams typically uses quarterly economic forecasts to signal whether policymakers anticipate a soft landing, and his updated timeline suggests a gradual return to price stability as the economy adjusts.
From the sources (5 posts)
@financialjuiceFed's Williams pushes back, hitting 2% inflation target from 2027 to 2028.
@financialjuiceFed's Williams reiterates monetary policy ‘well positioned’ for current economy.
@financialjuiceFed's Williams: expect inflation to moderate to 3.5% this year
@financialjuiceFed's Williams: Williams expects inflation pressures to moderate.
@firstsquawkFED'S WILLIAMS SAID MONETARY POLICY IS WELL POSITIONED TO BRING INFLATION BACK TO TARGET, THOUGH PRICE PRESSURES ARE EXPECTED TO REMAIN UNCOMFORTABLY ABOVE 2% IN THE NEAR TERM.